Coal PF
From Indiapensions
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Legislation
The Coal Mines Provident Fund Scheme was framed under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948. The coverage of the scheme has been increasing at a very slow pace. According to the statewise distribution, Bihar has the maximum membership amongst all the states.
Eligibility
All the employees of the coal mines have access to this benefit. There are approximately 5.99 lakh employees who are currently (as on 31st December 2005) members of the Coal Mines Provident Fund.
Operational Framework
Contributions
In the Provident Fund Scheme, both the employee and employer make an equal contribution of 12% of the employees' salary. The total contributions in the PF were Rs.13275.53 crores as of September 2002.
Benefits
The scheme provides for a lumpsum withdrawal at the time of retirement. The lumpsum is accumulated through the contributions and the interest rate that is accreted to the fund. Interest at the rate of 8% is allowed on the closing balance of Provident Fund of the previous year.
Administration
The administration of the Fund is the responsibility of the Tripartite Board of Trustees consisting of the representatives of the employers, employees and the Central/State Governments. Employers are required to pay a charge of 3%, out of which the administrative expenses are met.
Investment
The entire accumulation in the PF is invested as per the guidelines laid by the Ministry of Finance. The total face value of the fund was Rs.22269.55 crores upto September 2002.
